Month: May 2022

The Block Inc (ASX: SQ2) share price is suffering on Monday despite the company’s New York-listed stock’s gains.

At the time of writing, the Block share price is down 6.75% on the ASX, trading at $133.27.

For context, the S&P/ASX 200 Index (ASX: XJO) is also falling today. It is currently down 1.53%.

So what’s got the company’s Australian counterpart feeling so blue (or red) today? Let’s take a look.

What’s going on with the Block share price?

Block’s shares are suffering alongside its ASX 200 technology peers on Monday.

Right now, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is recording a 3.3% slump, and Block’s stock isn’t its biggest weight.

The Novonix Ltd (ASX: NVX) share price takes home that unfortunate prize. It’s currently down 8.2%.

At least Block’s stock is well versed in falling. It slumped 1.8% on Friday amid the release of the company’s quarterly earnings.

Interestingly, those same results appeared to incite stock in Block Inc (NYSE: SQ) – the company’s original US-based listing – to lift 0.61% after the Australian market closed for the week.  

Today’s tumble included, the Block share price has fallen 19% over the last 30 days on the ASX.

It’s also 24% lower than it was when it joined the Australian exchange following its takeover of former market darling, Afterpay earlier this year.

The post The Block share price is tumbling 7% today. What’s going on? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Macquarie and REA updates disappoint
• Block share price on watch amid Q1 earnings miss
• Why Block, Domain, Metcash, and Zip shares are pushing higher
• Bank of America tips 38% upside for Block shares. Here’s why
• Why Appen, Block, Life360, and Northern Star shares are dropping

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been another dreadful day of trading for ASX shares so far this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has lost a depressing 1.47% and is now back under 7,100 points. But the Lynas Rare Earths Ltd (ASX: LYC) is suffering a worse fate so far. As it currently stands, Lynas shares have lost a nasty 6.44% from last week’s closing price of $9.01 and are now trading at $8.43 each.

So what’s going on with Lynas shares this Monday?

Well, we can’t be certain. There hasn’t been much in the way of news or announcements out from Lynas in almost a month. The last piece of major news we got out of the company came back on 12 April. That was when Lynas released a quarterly report for the first three months of 2022. As we covered at the time, this report announced record quarterly sales revenue of $327.7 million, as well as a 17.5% rise in total rare-earth oxide production. Investors reacted positively at the time.

Perhaps today’s move just reflects a general market distaste for green metals companies like Lynas. Indeed, we are seeing some pretty major falls across the board in this space. Take Pilbara Minerals Ltd (ASX: PLS). The Pilbara share price has lost more than 6% so far today. It’s the same with Neometals Ltd (ASX: NMT) and Core Lithium Ltd (ASX: CXO).

So it seems investors don’t want anything to do with green metals shares today. And The Lynas share price looks to have been swept up in this trend.

Lynas shares are now down nearly 15% over the past month, as well as down 27% since the company touched a new 52-week high of $11.59 in early April.

At the current share price, Lynas commands a market capitalisation of around $8.4 billion.

The post The Lynas share price has plunged 6% today! What’s going on? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Westpac result impresses, AVZ halted
• Why is the ANZ share price sliding on Monday?
• Is the NAB share price a buy amid this volatility?
• Is it too late to buy big bank ASX shares?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This week may prove critical for the planned demerger of AGL Energy Ltd (ASX: AGL) as billionaire investor Mike Cannon Brookes warns that AGL dividends could be at risk.

According to reporting by The Australian, both AGL leadership and Cannon-Brookes will be meeting with the company’s biggest shareholders.

AGL wants to push ahead with a demerger of the company into a retailing business (AGL) and energy generation company (called Accel). However, Cannon-Brookes says that demerging would be a bad idea.

What are Cannon Brookes’ points on AGL?

The Australian reported that Cannon Brookes’ Grok Ventures would tell major shareholders that dividends would be “severely impacted” because of the “financial constraints” that Accel would face.

Accel could suffer “coal outages” and “major offtake contracts expiring in 2028”, according to Grok Ventures, adding the AGL board’s value assumptions were “severely misguided”.

Grok Ventures also would point out to shareholders its belief that exiting coal quicker-than-planned would open more economic opportunities with a green energy business, the newspaper reported.

Independent expert views

Independent expert Grant Samuel also reportedly concluded that shareholders could receive lower total dividends from two separate businesses than under the current combined structure because of “Accel’s debt amortisation profile”, The Australian reported.

Lower dividends weren’t the only thing that Samuel noted. There were “non-trivial” disadvantages, costs and risks from the demerger. However, the expert concluded that shareholders would be better off with two separate businesses.

How big are AGL dividends expected to be?

Analysts have varied expectations for the company.

Commsec numbers suggest that AGL could pay an annual dividend of 26 cents in FY22, 40 cents per share in FY23 and 60 cents per share in FY24. That would translate into dividend yields of 3.2% in FY22, 4.8% in FY23 and 7.25% in FY23.

In the FY22 half-year result, AGL reported a statutory net profit after tax (NPAT) of $555 million. The underlying net profit after tax was down 41% to $194 million. It decided to pay an interim dividend of 16 cents per share.

It’s expecting to generate a net profit after tax of between $260 million to $340 million for FY22.

Failed takeover

A couple of months ago, the AGL board rejected a revised indication of interest from a consortium including Brookfield and Grok Ventures. That bid was $8.25 per share, which was a premium of 15.2% to the prior closing price.

However, the board said that the bid ignored the opportunity of the proposed demerger to deliver future value. It also said that it ignored business momentum and improvements in the forward wholesale prices.

AGL said the demerger would create “two industry-leading companies with distinct value propositions. It will allow each business to be valued separately and more positively by the market on the basis of their own specific business fundamentals.”

AGL chair Peter Botten added that there would be defined, distinct dividend policies and capital structures for each company that would “support both future growth and appropriate returns to shareholders, as both organisations pursue their commitment to responsibly decarbonise without impacting energy reliability and affordability”.

AGL share price snapshot

The AGL share price is trading at $8.36 at the time of writing. Shares in the company are down 5% over the past 12 months but have lifted 36% since the start of 2022.

The post Cannon-Brookes warns AGL dividends at risk from demerger appeared first on The Motley Fool Australia.

More reading

• AGL share price makes partial recovery as expert declares demerger favourable
• AGL share price follows market lower despite demerger milestone
• Why are ASX 200 energy shares leaping higher today?
• Here’s why the AGL share price was cooking with gas in April
• Own AGL shares? Boss says Cannon-Brookes made ‘false claims’

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Suncorp Group Ltd (ASX: SUN) share price is defying much of today’s dip following the release of the company’s banking segment’s quarterly report.

Suncorp shares are slumping only slightly, while the broader market suffers. The S&P/ASX 200 Index (ASX: XJO) is currently recording a 1.05% drop.

At the time of writing, the Suncorp share price is $11.27, 0.4% lower than its previous close.

Here’s what the banking and insurance provider announced today.

Suncorp share price outperforms following bank’s growth

• Suncorp Bank’s home lending portfolio grew $803 million, or by 1.7%, over the March quarter
• Meanwhile, its business lending portfolio grew $91 million, or 0.8%
• Home lending lodgements also increased 21% on those of the quarter ending 31 December
• The bank’s impairment expense for the period was just $1 million
• 111 home lending customers were in hardship arrangements due to flood events as of 30 April

What else happened in the quarter?

Suncorp Bank’s home lending portfolio returned to above-system growth in February and March.

That saw it boasting a 6.9% annualised growth rate, which increased to 7.5% when discontinued line of credit products are excluded.

Meanwhile, its increased lodgements were driven by consistent competitive offerings and improved turnaround times.

The bank states its home lending portfolio is “high-quality and conservatively positioned”. It is weighted towards owner-occupiers with a loan-to-valuation ratio below 80%.

The bank’s business lending increased by $91 million (0.8%) last quarter, or 3.3% annualised.

It has also continued to grow transaction account balances by 19.3% annualised. Its higher margin retail term deposits have grown 6.1% annualised, whilst its savings portfolio dropped 8.1% annualised.

The bank’s $1 million total impairment charge was equivalent to less than 1 basis point of gross loans and advances annualised.

Suncorp Bank’s liquidity coverage ratio and net stable funding ratio were 143% and 142% respectively, as of 31 March 2022.

What did management say?

Suncorp Bank CEO Clive van Horen commented on the news helping to buoy the Suncorp share price today.

Horen said the bank’s home lending momentum is due to its delivery of a targeted program of work improving customer and broker experiences. He went on:

Turnaround times have been consistently competitive over the quarter, reflecting improved back-end processes to support the higher lodgement volumes. Growth momentum also extended to the business lending portfolio which grew $91 million during the March quarter and over $130 million in April.

Mr van Horen said the bank’s strong lending portfolio helped it report an expense of just $1 million for the quarter.

What’s next?

Today’s release didn’t provide any guidance for Suncorp Bank.

Though, it did note that the bank’s positive momentum continued in April, with over $550 million of growth.

Additionally, the bank flagged rising construction costs. It said it expects its construction and development portfolio will be impacted by supply chain dislocation and recent floods.

Finally, the bank is expecting to reduce its committed liquidity facility limit from its current position of $1.5 billion. Its limit is expected to drop by $500 million increments in May, September, and January.

Suncorp share price snapshot

The Suncorp share price is still in the long-term red. Though, it’s outperforming the ASX 200 year to date.

The company’s share price has slipped 1.8% since the start of 2022. Meanwhile, the index has tumbled 6%.

Looking further back, the company’s stock has gained 1.9% since this time last year. The ASX 200 has slumped 0.5% over that time.

The post Suncorp share price outperforms as home lending portfolio grows $800m appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Westpac result impresses, AVZ halted
• 5 painfully common investing mistakes to avoid right now
• Magellan share price sinks following $140 million Guzman sale
• Are these small 2 ASX growth shares now at compelling value?
• Westpac share price charges higher on earnings beat and improving costs outlook

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has started the week as it finished the last. The benchmark index is currently down 1.3% to 7,100.8 points.

Here’s what is happening on the ASX 200 today:

Westpac half-year result impresses

The Westpac Banking Corp (ASX: WBC) share price is charging higher after the banking giant’s half-year earnings came in ahead of consensus estimates. Westpac reported an 8% decline in revenue to $10,230 million, a 12% reduction in cash earnings to $3,095 million, and a 61 cents per share interim dividend. The Visible Alpha consensus estimate was for first-half cash earnings of $2.8 billion, with an interim dividend of 59 cents per share. Westpac also reiterated its bold cost cutting target.

AVZ shares halted

The AVZ Minerals Ltd (ASX: AVZ) share price is missing out on the market selloff today after being placed in a trading halt. While it remains unclear exactly what the halt is for, it appears likely to be in relation to concerns over the company’s ownership of the Manono Lithium project. Uncertainty regarding this issue sent the AVZ share price crashing 21% lower last week.

Magellan shares tumble

The Magellan Financial Group Ltd (ASX: MFG) share price is tumbling on Monday. This follows broad market weakness and news that the company has offloaded its stake in Guzman y Gomez. The company has agreed to sell its 11.6% stake for $140 million, which represents a $34 million profit on its original investment. Magellan made the sale to focus on its core funds management business.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price with a 3% gain. At the end of last week, Citi reiterated its buy rating with a $108.42 price target on the pizza chain’s shares. The worst performer on Monday has been the News Corp (ASX: NWS) share price with a 10% decline. Investors have been selling this media giant’s shares since its third quarter update from last week disappointed the market.

The post ASX 200 midday update: Westpac result impresses, AVZ halted appeared first on The Motley Fool Australia.

More reading

• Magellan share price sinks following $140 million Guzman sale
• Westpac share price charges higher on earnings beat and improving costs outlook
• Everything you need to know about the latest Westpac dividend
• Why is the ANZ share price sliding on Monday?
• Why is the AVZ share price halted today?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There’s no such thing as a perfect investor. Even the most seasoned investing experts make bad investments every now and then. However, good investors understand that some fundamental mistakes can (and should) be avoided to make you a better investor.

Here are five painfully common investing mistakes to avoid.

1. Underestimating the power of compounding

In investing, one of the best resources on your side is time — the earlier you begin investing, the better. Time is so important because of compounding, which occurs when your investment returns begin to earn returns of their own.

To illustrate the power of compounding, let’s imagine a scenario where your investments return 10% annually (the historical average annual return of the S&P 500). If you contribute $500 a month, here’s how much you’d roughly accumulate at different points in time:

Monthly Contribution	Years	Account Total
$500	10	$95,600
$500	15	$190,600
$500	20	$343,600
$500	25	$590,100
$500	30	$987,000

Chart and calculations by author.

In this scenario, although it will take 10 years to potentially accumulate $95,000, it will take only five more years to almost double that amount. Although you managed to gain $153,000 in the five years between year 15 and year 20, in the five years between year 25 and year 30, your investment will possibly gain over $396,000. That showcases the true power of compounding.

2. Ignoring an index fund’s expense ratio

Even though you won’t be charged to purchase an index fund, you’ll pay an expense ratio, which is charged annually as a percentage of your total investment. If an index fund has a 0.50% expense ratio, you’ll pay $5 per $1,000 that you invest. If the expense ratio is 0.25%, you’ll pay $2.50 per $1,000 invested.

A small difference in percentages may not seem like much but can really add up over time. Just a difference in a quarter of a percentage point can add up to tens of thousands in the long run.

3. Keeping up with a stock’s daily price movement

The only thing guaranteed in the stock market is volatility. No matter how great a business is, you can expect its stock price to fluctuate — that’s just how it works.

If you’re a long-term investor, a stock’s daily price movements shouldn’t affect you or change your attitude toward the investment. If you’re investing in fundamentally sound businesses, you should be able to trust that they’ll produce great returns over the long term, even if they’re having a rough time in the short term.

4. Equating price with cheap or expensive

You shouldn’t look at a stock’s price by itself to determine whether or not it’s cheap or expensive. It could very well be the case that a $20 stock is expensive and a $1,000 stock is cheap. Investors should use other metrics to determine whether or not a stock is a good value at its current price.

One common metric to determine a stock’s value is its price-to-earnings (P/E) ratio, which compares a company’s stock price to its earnings per share (EPS). Calculating a company’s P/E ratio and comparing it to similar companies is one way to help determine if it’s overvalued or undervalued.

5. Ignoring dividends

Outside of an increase in a stock’s price, dividends are the other primary way to make money from an investment. While younger companies tend to not pay dividends because they need to reinvest the money back into the company to continue growing, older, more established companies typically pay out dividends because they likely have less room for hypergrowth in their stock price. It’s a way to reward shareholders for holding onto their investments.

If you consistently buy dividend-paying stocks, you can set yourself up to have a decent amount of income coming in, both now and in retirement. Along with retirement accounts and Social Security, dividends can play a huge role in supplementing your retirement income. In some cases, it can be thousands monthly. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 5 painfully common investing mistakes to avoid right now appeared first on The Motley Fool Australia.

More reading

• Magellan share price sinks following $140 million Guzman sale
• Are these small 2 ASX growth shares now at compelling value?
• Westpac share price charges higher on earnings beat and improving costs outlook
• Here’s why the Carnaby Resources share price just rocketed 27%
• Everything you need to know about the latest Westpac dividend

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Magellan Financial Group Ltd (ASX: MFG) share price is in reverse today following the company’s disinvestment announcement.

At the time of writing, the fund manager’s shares are exchanging hands at $16.49, down 4.41%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is also having another tough day, trading at 7,140.7, down 0.90%.

Magellan offloads Guzman interest

Investors are reacting to the company’s latest news, selling off the Magellan share price.

In its release, Magellan advised it has entered into an agreement to sell its 11.6% interest in Guzman y Gomez.

Founded in 2006, Guzman y Gomez is an Australian multinational casual-dining and fast-food restaurant chain, specialising in Mexican food.

The co-party, a Barrenjoey Capital Partners entity, will purchase the stake through an investment trust comprising high-net-worth investors.

The cash consideration of the sale is valued at $140 million.

Magellan noted that it may also be entitled to a further payment of up to $6 million. This is subject to the performance of Guzman y Gomez and the “realisation of the investment by the trust.”

Furthermore, for the sale to proceed, a pre-emptive rights process under the Guzman y Gomez shareholders’ deed must be completed. This provides the co-party’s shareholders with the right to purchase Magellan’s shares on the same terms.

The transaction is expected to take place in two tranches occurring in June and July 2022.

Magellan is forecasting to record a pre-tax profit on the sale of $34 million in FY22. Proceeds will be used to support the company’s ongoing capital management initiatives.

Magellan chair, Mr Hamish McLennan commented:

GYG is an outstanding company, however, the sale of our shareholding is consistent with our strategy to focus on our core funds management business.

The upfront sale price represents a 36.3% premium to our entry price in January 2021. We believe the sale is an excellent outcome for Magellan shareholders.

Magellan is pleased with the performance of its Magellan Capital Partners investments. The outcome we have achieved with this transaction reinforces the strength of our partnership with Barrenjoey.

Magellan share price summary

Adding to today’s losses, the Magellan share price has continued its downhill trajectory since July 2021.

Reaching a 52-week high of $56.18 on 2 July 2021, this means the company’s shares are down by roughly 70%.

Year to date has also fared no better, with losses of around 22% so far in the five months.

Magellan has a price-to-earnings (P/E) ratio of 9.68 and commands a market capitalisation of roughly $3.06 billion.

The post Magellan share price sinks following $140 million Guzman sale appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• These were the best performers on the ASX 200 last week
• Magellan share price lifts as FUM tumbles again
• Here are the top 10 ASX shares today
• Why is the Magellan share price soaring 7% today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There has been a significant sell-off of many ASX growth shares over the last few months. Could they now be opportunities?

A company isn’t automatically better value if its share price drops, but these two ASX shares are planning growth for the long term. Let’s take a look:

RPMGlobal Holdings Ltd (ASX: RUL)

RPMGlobal describes itself as a global leader in mining software solutions, advisory services and professional development for the mining industry. The idea is that RPMGlobal can enable clients to extract more value at every stage of the mining lifecycle.

Major clients include Rio Tinto Limited (ASX: RIO), BHP Group Ltd (ASX: BHP), South32 Ltd (ASX: S32) and Fortescue Metals Group Limited (ASX: FMG).

The software business has been making acquisitions to improve its offering to clients, in areas like environmental consultancy and emissions reporting.

While the RPMGlobal share price has declined by more than 25% since the start of 2022, its financial metrics are steadily improving.

Its annual recurring revenue (ARR) is growing as it signs more customers onto software subscriptions and now sits at $27.9 million. The FY22 half-year operating profit rose $3.9 million to $2.1 million, while net profit after tax (NPAT) increased $8.3 million to $1.9 million.

The company is expecting a ‘real’ lift in software sales once mining countries open their borders. The ASX growth share said that it’s best to sell software to global companies in person.

It points out that mining companies are accelerating the move to cloud solutions, so RPMGlobal believes it’s well-positioned to benefit from this structural change.

Frontier Digital Ventures Ltd (ASX: FDV)

Frontier Digital Ventures describes itself as a leading owner and operator of online marketplace businesses in fast-growing emerging markets. Those regions are Asia, Latin America, Middle East and North Africa. Its portfolio consists of 16 companies in 20 markets.

Over the last six months, the Frontier Digital Ventures share price has fallen by 40%.

However, the company’s quarterly revenue continues to climb on a rapid basis and it’s now seeing positive earnings before interest, tax, depreciation and amortisation (EBITDA).

In the quarter for the three months to March 2022, Frontier Digital Ventures’ share of revenue was $20.2 million, up 83% year on year. The ASX growth share’s quarterly portfolio EBITDA was a positive $0.7 million, it was the third consecutive quarter of positive EBITDA, with 12 of the operating companies seeing positive EBITDA.

The Frontier Digital Ventures founder and CEO Shaun Di Gregorio said:

Building on the strength of our online marketplace leadership positions, we continue to invest in our operating companies to accelerate their transaction capabilities and drive organic growth.

Our strong underlying marketplace business model combined with developing our transactional capabilities represents a compelling value creation opportunity for FDV’s shareholders. FDV remains in an enviable position with an attractive earnings growth profile and strong balance sheet.

The post Are these small 2 ASX growth shares now at compelling value? appeared first on The Motley Fool Australia.

More reading

• Westpac share price charges higher on earnings beat and improving costs outlook
• Here’s why the Carnaby Resources share price just rocketed 27%
• Everything you need to know about the latest Westpac dividend
• Why the Spirit share price bounced 12% this morning
• Analysts name 2 high yield ASX dividend shares to buy now

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Frontier Digital Ventures Ltd and RPMGlobal Holdings. The Motley Fool Australia has recommended Frontier Digital Ventures Ltd and RPMGlobal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Westpac Banking Corp (ASX: WBC) share price has started the week in a positive fashion.

In morning trade, the banking giant’s shares are up 3% to $24.57.

Why is the Westpac share price charging higher?

The Westpac share price is charging higher on Monday after investors responded positively to the bank’s half-year results.

For the six months ended 31 March, Westpac reported an 8% year on year decline in revenue to $10,230 million and a 12% reduction in cash earnings to $3,095 million. This allowed the bank to pay a 61 cents per share interim dividend.

While this was a touch lower than what Goldman Sachs was expecting, it was ahead of consensus estimates. The Visible Alpha consensus estimate was for first-half cash earnings of $2.8 billion, with an interim dividend of 59 cents per share.

Also supporting the Westpac share price was a stronger than expected net interest margin (NIM), which came in at 1.85%.

Goldman commented: “WBC’s 1H22 NIM was down 14 bp hoh to 1.85% (ex Markets at 1.70%) and was higher than our expectations (GSe, -17 bp to 1.82%).”

What else?

But perhaps the biggest driver of the Westpac share price today is the bank’s reiteration of its cost reduction plans.

With both Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) abandoning their cost reduction targets last week, many thought Westpac would be forced to follow suit. Particularly given how the market was already very sceptical over its plans.

However, this morning management reiterated its target of reducing its cost base down to $8 billion by FY 2024. This compares to operating costs of $13.3 billion in FY 2021. Though, those numbers include $2.3 million of notable items.

Time will tell if Westpac gets there, but it certainly made great strides in doing so during this half. Management reported a 10% or $624 million reduction in operating expenses to $5,373 million.

The post Westpac share price charges higher on earnings beat and improving costs outlook appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the latest Westpac dividend
• Westpac share price on watch amid half-year profit slide
• 5 things to watch on the ASX 200 on Monday
• Own Westpac shares? Here’s what to expect from the bank’s half-year results
• Why ASX 200 bank shares are in the spotlight

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Carnaby Resources Ltd (ASX: CNB) share price is flying higher in morning trade. It’s up 14% after leaping more than 27% higher in the early minutes after the opening bell.

Below we look at the drill results that look the be driving ASX investor interest.

What drill results did Carnaby announce?

The Carnaby Resources share price is rocketing after the company reported “stunning drill results“. The results are from the exploration campaign at its Greater Duchess Copper Gold Project in Mt Isa, Queensland.

The results come from both reverse circulation and diamond drilling.

One of the drill holes intersected the widest high-grade intercept Carnaby has discovered to date. Results were 68 metres at 2.4% copper, 0.4 grams per tonne of gold from 40 metres, including 42m @ 3.6% copper, 0.5 g/t gold from 63m.

The ASX resource explorer said it has now intersected “wide, high-grade and very shallow” copper-gold mineralisation across a zone of more than 300 metres strike length that remains open.

Atop this, it reported receiving a number of other new results and visual intersections. Those include a 30-metre zone of very strong copper sulphides.

On the results that look to be lifting the Carnaby Resources share price today, Carnaby managing director Rob Watkins said:

These stunning drill results clearly demonstrate the resource and development potential of the Greater Duchess Copper Gold Project. We are discovering and building a pipeline of exceptional and highly desirable copper gold deposits whose intrinsic value will only grow over time as we define and grow the maiden resource and move towards a development timetable.

Drilling at the project continues with two dedicated drill rigs on site.

Carnaby Resources share price snapshot

Though it has come under pressure in 2022, the Carnaby Resources share price remains up 220% in the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 0.48% since this time last year.

The post Here’s why the Carnaby Resources share price just rocketed 27% appeared first on The Motley Fool Australia.

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• Why is the Carnaby Resources share price surging 8% on Monday?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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